What sets TIPS apart is the protection they afford against unexpected inflation

In theory, if you think inflation will exceed the market’s expectations, a TIPS fund would be a good bet.

Investment pros make this assessment by checking the break-even inflation rate — the difference between the yields on TIPS and nominal Treasuries.

In the first week of January, that rate was about 3 percent for five-year Treasuries versus five-year TIPS.

People who think inflation will exceed that level for the next five years might want a TIPS fund.

(They also might want to ask themselves why their inflation intuition is better than the market’s.)

New York Times 14 Jamuary 2022

Englund